Why am I being requested to provide tax information? How can I submit my tax information? After selecting Payoneer as your payment method, you will receive an email containing a link to an online wizard which will guide you in submitting the appropriate ‘W’ form. If you require assistance in answering the online questions, please refer to theIRS website or consult a tax advisor. I am not sure which type of W form I need to provide If you are unsure which type of W form you need to provide, you can access the Tax Wizard by accessing your online Payoneer Account and choosing "Tax Forms" in the "Activity" tab or consult with a certified tax consultant/accountant. What are the W-9 and W-8 series forms? Using the online wizard, I was directed to the W-9 form. What is the W-9 form?
The company with which you are working is based in the United States. By law, all companies based in the US must comply with IRS (Internal Revenue Service) regulations. These regulations include collecting information regarding your tax status. Payoneer is requesting this information from you on behalf of the company with which you work.
These forms, issued by the IRS, are used by companies with which you work to collect information regarding your identification and tax status. The information you supply in the form is sent directly to the company with which you work and not to the IRS.
The companies need this information in order to know how much tax (if any) to deduct from your payments and in order to submit any relevant tax forms to the IRS on your behalf.
This form is used by US persons and entities to provide information regarding their taxpayer identification number and certification.
What is a US person?
For US federal tax purposes, you are considered a US person if you are one of the following:
1.An individual who is a US citizen
2.An individual who is a US resident alien
What is a US entity?
For US federal tax purposes, you are considered a US entity if you are one of the following:
1.A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States
2.An estate (other than a foreign estate)
3.A US domestic trust
Using the online wizard, I was directed to the W-8BEN form. Who is this form for?
The W-8BEN form is used by foreign persons and entities working for US companies. IRS regulations require non-US taxpayers to complete this form in order to be exempt from US tax reporting requirements. Even if you are not an American but the company for which you are working is - you are required to provide the tax information.
What is a foreign person?
For US federal tax purposes, you are considered a foreign person if you are one of the following:
1.An individual who is a non-resident alien
2.Any other person that is not a US person
What is a foreign entity?
For US federal tax purposes, you are considered a foreign entity if you are one of the following:
1.A foreign corporation
2.A foreign partnership
3.A foreign trust
4.A foreign estate
I am a foreign person/entity. For tax purposes, how can I know if a tax treaty exists between my country and the US?
Please refer to this IRS website.
What happens if I do not submit a ‘W’ form?
Your payments from the company may be delayed or you may not receive any payments at all. Note that your other payments (from individuals and non-US companies) will not be affected by this.
After submitting my ‘W’ form, I realized I made a mistake. How do I fix this?
To submitting a new ‘W’ form please, follow these steps:
1.Sign in to Payoneer.
2.In the upper right corner click on the profile icon
3.Click on "Settings"
4.Click on "Tax Forms"
5.Locate the relevant submitted tax form and select it
6.In the pop-up window, choose "Edit". This will redirect you to the Payoneer Tax Forms page
7.Select the relevant tax form and complete it with the correct information. If you are unsure which form to select, click the link for "Use Wizard". The Tax Wizard will help guide you in the right direction.
I received an email stating that my ‘W’ form is due to expire/has expired. How do I submit a new form?
Use the link in the email you received to access the online wizard and submit a new form. Note that forms expire after one year.
I submitted my ‘W’ form using the online wizard. When do I need to submit a new form even though it has not yet expired?
You need to submit a new form if one of the following occur:
1.Your legal name has changed (for example, due to marriage or incorporation).
2.Your country of residence has changed.
3.Your business Tax Identification Number (TIN) has changed from your Social Security Number (SSN) to an Employer Identification Number (EIN).
If one of the above occur, please contact us. An email containing a link to the online wizard will be sent to you.
I submitted my ‘W’ form using the online wizard and shortly after received another email asking me to submit my ‘W’ form. Why do I need to re-submit my form?
If you received a new email, your ‘W’ form was rejected by the company because of one or more of the following reasons:
1.There is a mismatch between the details you provided to the company and in the form you submitted.
2.The Social Security number entered in the form does not match that of the person submitting the form.
3.Your name was misspelled.
4.A middle initial or middle name was omitted.
5.The business name does not match the name that appears on your IRS CP575A notice.
Please review the form you submitted and re-submit the ‘W’ form with accurate details.
I work for several companies, all of which require me to submit a ‘W’ form. Do I need to submit a form for each individual company?
Yes. You need to submit a form for each company. For your convenience: if you are logged in to your Payoneer account, each form will be automatically filled in with the details you have entered in the previous form.
I need help in filling out the ‘W’ form. Can I contact Payoneer for help?
Payoneer is not authorized to provide you with advice on completing the ‘W’ form. Please consult a tax professional or go to the IRS website.
Does Payoneer report my earnings to tax authorities?
No. You are responsible for reporting the earnings received and funded to your Payoneer account to all the relevant government tax authorities.
Does Payoneer store the tax information that I have submitted?
Payoneer collects the information and passes it on directly to the company with which you are working.
As a seasoned expert in international financial transactions and tax compliance, I bring forth a wealth of knowledge in the intricacies of tax regulations, particularly those pertaining to individuals and entities working with US-based companies. My understanding of the Internal Revenue Service (IRS) guidelines and related processes allows me to provide comprehensive insights into the concepts discussed in the provided article.
Let's dissect the key concepts and elaborate on each:
1. IRS Regulations and Tax Information Request:
- The IRS (Internal Revenue Service) regulations mandate that all US-based companies comply with tax-related obligations.
- Companies, such as the one associated with the user, are required to collect tax information from individuals or entities they engage with.
2. Tax Forms - W-9 and W-8 Series:
- The W-9 form is used by US persons and entities to disclose taxpayer identification number and certification. US persons include citizens and resident aliens.
- The W-8BEN form is intended for foreign persons and entities working for US companies. Non-US taxpayers must complete this form to be exempt from US tax reporting requirements.
3. US Person and US Entity Definitions:
- US persons include US citizens and US resident aliens for federal tax purposes.
- US entities comprise partnerships, corporations, companies, associations, estates, and US domestic trusts.
4. Foreign Person and Foreign Entity Definitions:
- Foreign persons, for US federal tax purposes, are non-resident aliens and any other person not classified as a US person.
- Foreign entities encompass foreign corporations, partnerships, trusts, and estates.
5. Tax Treaty Information:
- To determine if a tax treaty exists between a foreign person/entity's country and the US, the user is directed to the IRS website.
6. Consequences of Not Submitting a 'W' Form:
- Failure to submit the required 'W' form may result in delayed or withheld payments from the US-based company.
7. Amending a Submitted 'W' Form:
- Users can rectify mistakes in a submitted 'W' form by accessing their Payoneer account, navigating to "Tax Forms," and utilizing the editing option.
8. Expiry of 'W' Form and Submission of a New Form:
- 'W' forms expire after one year, and users receive email notifications for renewal. New forms are required in case of name changes, changes in residence or Tax Identification Number (TIN).
9. Reasons for Rejected 'W' Forms:
- Common reasons for form rejection include mismatched details, incorrect Social Security numbers, misspelled names, or discrepancies in business names.
10. Multiple Employers and 'W' Forms:
- Individuals working for multiple companies must submit a separate 'W' form for each company. Payoneer facilitates convenience by auto-filling forms with previously entered details.
11. Assistance in Filling Out 'W' Form:
- Payoneer cannot provide advice on completing 'W' forms. Users are encouraged to consult tax professionals or refer to the IRS website.
12. Earnings Reporting and Tax Information Storage:
- Payoneer does not report earnings to tax authorities. Users are responsible for reporting income to relevant government tax authorities.
Conclusion:
In summary, my expertise ensures a comprehensive understanding of the intricate tax-related processes and requirements outlined in the article. I am equipped to address any inquiries or concerns related to tax compliance and payment procedures involving US-based companies.
